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On 13 February 2008, the Government of Armenia signed an agreement to transfer 100% of the state-owned Armenian Railways to Russian Railways. According to the agreement, the concession period is 30 years, with a possible extension for another 10 years by mutual agreement of the parties. In accordance with the terms of the tender, existing railway employees (4,300 people), except those of retirement age, were transferred to the staff of South Caucasus Railway on salary increases of up to 20%.[1]

South Caucasus Railway is among the five largest companies of Armenia, and its performance has a direct impact on the country's economic growth.